Item Coversheet

Resolutions - C7  E




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:July  17, 2019
 



SUBJECT:

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, URGING THE FLORIDA PUBLIC SERVICE COMMISSION (THE "PSC") TO SET MEANINGFUL ENERGY EFFICIENCY GOALS IN THE 2019 FLORIDA ENERGY EFFICIENCY AND CONSERVATION ACT ("FEECA") PROCEEDINGS, INCLUDING A SPECIFIC PERCENTAGE GOAL; TO REPLACE THE RATEPAYER IMPACT MEASURE TEST WITH A CRITICAL COST-EFFECTIVENESS TEST FOR ELECTRIC EFFICIENCY PROGRAMS; TO ESTABLISH A STRONG ENERGY EFFICIENCY RESOURCES STANDARD FOR THE STATE OF FLORIDA AND ADOPT A STRONG DEMAND SIDE MANAGEMENT PROGRAM THAT INCLUDES UTILITY REBATES; TO REQUIRE FLORIDA ELECTRIC UTILITY COMPANIES TO SHARE WITH LOCAL GOVERNMENTS ANONYMIZED ENERGY CONSUMPTION DATA AT THE CENSUS BLOCK LEVEL TO ALLOW CITIES AND COUNTIES TO EFFECTIVELY DESIGN AND IMPLEMENT THEIR OWN ENERGY CONSERVATION PROGRAMS FOR RESIDENTS AND BUSINESSES; TO LEVERAGE FEDERAL WEATHERIZATION ASSISTANCE PROGRAM FUNDS TO PROVIDE GREATER ASSISTANCE TO LOW INCOME HOMEOWNERS TO REQUIRE THAT MOST, IF NOT ALL, OF THE NUMERIC ENERGY CONSERVATION GOALS BE MET THROUGH PROGRAMS TO ASSIST LOW- AND MODERATE-INCOME HOUSEHOLDS; AND TO ESTABLISH A RENEWABLE ENERGY GENERATION GOAL FOR UTILITIES; AND DIRECTING THE CITY CLERK TO TRANSMIT THIS RESOLUTION AND THE COMMENTS SET FORTH HEREIN TO THE PSC AND TO ALL FLORIDA MUNICIPALITIES.


RECOMMENDATION

Adopt the resolution

ANALYSIS

In 1980, the Florida Legislature passed the Florida Energy Efficiency and Conservation Act (FEECA) to reduce peak electricity demand and energy consumption. Sections 366.82(2) and 366.82(6), Florida Statutes, require the Florida Public Service Commission (PSC) to establish goals for the FEECA utilities and review the goals at least every five years.

 

The five Florida investor-owned utilities currently subject to FEECA are: Florida Power & Light (FPL), Duke Energy Florida LLC, Tampa Electric Company, Gulf Power Company, and Florida Public Utilities Company. The two municipal utilities currently subject to FEECA are: JEA (formerly Jacksonville Electric Authority) and Orlando Utilities Commission.

 

Historically, Florida utilities’ energy efficiency spending falls well below both national and southeastern states’ averages. According to the American Council on an Energy-Efficient Economy (ACEEE), in 2017, Florida's largest utilities had an average energy conservation saving rate of 0.09 percent. In the same year, the national energy conservation savings average was 0.66 percent; more than seven times higher than Florida.

 

Most states use some combination of the cost-effectiveness tests outlined in the California Standard Practice Manual but Florida is one of the only states to still rely heavily on the ratepayer impact measure (RIM) test as a cost-effectiveness test. The RIM test does not provide a balanced cost-effectiveness test for electric efficiency programs compared to other tests in the California Standard Practice Manual.  Using other cost-effectivenss tests and weighing them more evenly would provide a more transparent representation of energy efficiency programs’ costs and benefits.

 

Energy conservation and efficiency programs and policies that promote behavioral and operational changes by building owners and building occupants can not only significantly reduce energy demand from the build environment, reduce greenhouse gas emissions and help building owners save money on bills, but also make the transition to renewable energy more feasible. To ensure that Florida’s utilities are moving to lower-emissions and no-emissions sources for electricity production, the PSC could establish a renewable energy generation goal for utilities. FPL’s electricity generation and purchased power profile indicates that only about 1.5% of its fuel mix was from solar in 2018. According to FPL’s 2019 Ten Year Plant Site Plan, FPL projects that approximately 15% of the total energy they deliver in 2028 will be from solar energy. Moreover, FPL recently announced its ’30-by-30’ plan; a plan to install more than 30 million solar panels by 2030. The PSC establishing a renewable energy generation goal for utilities would reinforce the current goals that many Florida utilities, including FPL, have already set and provide a foundation for communities that also want to set up renewable goals. This statewide goal would facilitate the collaboration between communities and utilities to reach their renewable energy goals.

 

The City is committed to the adaptation and mitigation of climate change and has taken steps to reduce our community's carbon emissions by completing annual greenhouse gas inventories, providing a Property Assessed Clean Energy (PACE) program for residents and businesses, commencing the development of a climate action plan and greenhouse gas emissions reduction targets, and adopting policies such the Green Building Ordinance and the Urban Heat Island Ordinance which encourage sustainable construction and energy efficiency. In addition, the City supports the Sierra Club’s Ready for 100 campaign which challenges cities to set a target of 100% clean, renewable energy.

 

The City is also a party to the Global Covenant of Mayors for Climate & Energy, which is the world's largest cooperative effort among mayors and city leaders to reduce greenhouse gas emissions, track progress, and prepare for the impacts of climate change.

 

The City continues to adapt to the effects of climate change and implement programs and policies that aim to mitigate climate change. Through a collaborative effort with local and regional stakeholders, these efforts will yield a greater impact. Our utility is critical in the success of the goals and targets we set regarding climate action and we hope that our utility’s future plans, and Florida utilities’ future plans as a whole, support our municipality’s low-emission ambitions and the goals of other regional partners and cities and counties across Florida. 

CONCLUSION

The Administration recommends the Mayor and City Commission to approve the Resolution.

Legislative Tracking
Environment and Sustainability
Sponsor
Commissioner Mark Samuelian

ATTACHMENTS:
Description
Resolution_PSC_FEECA